August 2 2012

Blog

Hello all!

I've been having some serious technical difficulties! Sorry I've been MIA I'm updating via phone so I'm gunna keep it short!

Apple

Last week I bought one 670 apple call. I bought it before they came out with earnings unfortunately they missed their earnings! The stock dropped 30 bucks after hours. I am still holding the option... It has about 10 days to expire, since earnings it bounced back from its loss and hope it keeps climbing.

Google
Google was really a winner last week. I bought two 650 calls... There was some resistance at the 615 level but once it broke through that level it was all support! I got out of it Friday with a $550.00 profit. Remember never lose taking a profit.

What is market resistance?

The price at which a stock or market can trade, but not exceed, for a certain period yof time. - investopedia

Basically consider it like a ceiling every time a stock gets to a certain level it has trouble going past it. (resistance level) once it passes that level it climbs! Now it's trading at about $628

What is market support?
The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. - investopedia

This is kind of like the floor.

You can analyze charts to see previous trendlines of support or resistance and make decisions based on your findings... This one was a freebie :)

Monday I bought 6 $115 September Goldman Sachs calls. GS moves slower and has a little bad press but all it takes is some good news for the price to go up.

That's all I have for now !

Brit

July 6th,2012

The estimates for the non-farm payroll were lower than anticipated and unemployment remained at 8.2%... the markets reacted accordingly the Dow closing under 124 points. Let’s go through the days positions.

Crude Oil- 

I liquidated crude at 84.40 with a 2,087 loss but after some additional research I reestablished the position. I bought 2 contracts in the crude oil, the first at 84.65 and the second at 84.52 which brings me to an average price of 84.59. Adding to a position allows you to enter at different levels as opposed to one price. If crude is dipping I would suggest a buy!

Apple- 

 I added to my apple position buying more $625 calls at 11:08 am when the stock was trading at 603.83 settling at 606.25, which gives me a total of two positions in Apple. This is an approximately a $1,500 winner.  I am going to review some charts this week.

Google

I decided to buy some Google positions in addition to Apple. I bought the $625 calls when the stock was trading at 584.83; this was also a $625 call.

Ten Year Note- Loser

Oh the ten year. I decided to add to my ten year position, I’ve have three contracts short at 134’00, currently is 1,406 loser. Even though this is currently a losing position and a lot of people would suggest against adding to a losing position. I am confident in my decision.

Gold- The Winner!

I bought gold at 1577.40 settling at 1578.90, for every dime gold moves it has a $10.00 tick value therefore this is a $1,500 winner. Are you with me? Ended the day a happy girl! Even though I lost money in crude I definitely reestablished myself with this position.

Google and Apple are both promising companies. It’s important to remember that prices are based on the future of a company, a lot of the information we are receiving now has already been factored into the market. I think an important tip if you are interested in trading is looking for an edge in the market. You want to be able to see various cause and effect patterns and factor those into your decision.

For example the news of a new iPhone being released will not have a profound effect on the price, Apple releases a new iPhone every year that’s not an edge. However, finding out that Apple has ordered parts to start making televisions is an edge that will effect the market.  Keep this in mind when you are considering the direction of a market or investing in different stocks.

I’ve been getting some questions about getting started with trading, I think paper trading is a very good way to begin to understand the markets. Sign up for a virtual trading account to get familiar with the terminology and understanding your decisions without risking anything. Also studying charts helps, cross-referencing charts and events for the company will help you understand the future of the company.

Friday was definitely a tough market but I am comfortable with my positions. Earnings will be released soon I will have some thoughts at that later this week. I have attached screen shots of my calls for proof… Be sure to follow me on twitter @TheBritReport for the most up to date positions.

That’s all for today!

Brit